Brian Grosso
Deep value

GP Strategies: Quality Business, But Too Expensive

Company Overview

GP Strategies Corp. (NYSE:GPX) is a global provider of performance improvement solutions. The company is contracted mostly by government entities and large businesses to provide training, e-Learning solutions, management consulting and engineering services. The company provides services in 45 countries to automotive, steel, oil and gas, power, chemical, electronics and technology, manufacturing, software, financial, retail, healthcare and food and beverage industries, as well as government agencies.

The Business Model

The company attempts to grow organically while supplementing that with a few acquisitions per year. To give you some perspective, the company has made 20 acquisitions since 2006, mostly in the range of $1-3M but as much as $26M. The acquisitions are almost completely supported by FCF....

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